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Managing Projects withPart 3
Table of Content
Project Planning & Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Product Breakdown Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Work Breakdown Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
RACI Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Project Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Cost Estimating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Project Planning & Scheduling
Typology
2 types of project schedules
Master Schedule~ Summary Schedule
MasterplanCalendrier directeur
Coordination Schedule~ “PERT”, Gantt chart
Activity networkCalendrier de coordination
Strategic levelThe whole projectIntuitive approach
Tactical levelOne or a few phasesAnalytical approach
One page/slideCan be in the Project Roadmap
Several pagesCan be in the PMP
This work is licensed under a Creative Commons Attribution – Share Alike 3.0 Switzerland License. Pierre Bonnal
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Initiators
Master ScheduleWhen and which effort?
Master Schedule preparation
Master Schedule (re)validation
Project Board
Master Schedule updateStudy Team
Master Schedule updatesProject Team
FINALIZECOMMISSIONBUILDDESIGNSTUDYINITIALIZE
Coordination ScheduleWhen and which effort?
Study Coordination Schedule* preparation (if needed)Study Team
Project Coordination Schedule* updatesProject Team
Study Team
Project Coordination Schedule* preparation
* incl. PBS, WBS, LoA (list of activities), RBS, RACI matrix
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MayAprilMarchFeb.Jan.Dec.Nov.Oct.Sep.
BRZ•KITE project launched
CDR released Perform Basic Design
Perform Engi neering Design TDR released
Make & Test PrototypeSet Supply Chain
Perform Detailed Design of Manufacturing Facility Procure Equipment & Tooling
Perform Civil Engineering WorksInstal & Commission Equipment & Tooling
Ramp-up Production1st batch ofkites shipped
Coordination Planning & SchedulingA three-step process
q Identifying the project activities
w Identifying the resources available, estimating the resources required
a Gantt chartMicrosoft Project Gantt chart® ®
ProjectWizard Merlin Gantt chart® ®
The Work Breakdown Structure (WBS)
The RACI Matrix
e Scheduling the activities
The Coordination Schedule
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Coordination Planning & Scheduling
3 possible approaches
Intuitiveapproaches
Analogicalapproaches
Analyticalapproaches
creativitytechniques Practice Standard
for Work BreakdownStructures
q Identifying the project activities
PMBOK Quintilianheptameter
-inspired
Coordination Planning & Schedulingq Identifying the project activities Ú analogical approaches
> Approach sold as systematic,but not that much!
> Global lessons learned collectedby the Project Management Institute
NASA's Work Breakdown Structure Handbook (NASA/SP-2010-3404)Project Management Institute's Practice Standard to Work Breakdown Structures
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Coordination Planning & Schedulingq Identifying the project activities Ú analogical approaches
Project Management Institute's Practice Standard to Work Breakdown Structures
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
> Inspired from the Quintilian heptameter
Marcus Fabius Quintilianus(c. 35 – c. 100 CE) was a Roman
rhetorician from Hispania, widely referred to in medieval schools of
rhetoric and in Renaissance writing
quiswho
quidwhat
ubiwhere
quibus auxiliiswhich means
curwhy
quomodohow
quandowhen
1=! Describing the final deliverable(s)
The Product Breakdown Structure (PBS)
1=@ Deriving the Work Breakdown Structure (WBS) from the PBS
The WBS top nodes, then the WBS-matrix
1=# Generating the list of activities from the WBS-matrix
The activity portfolio
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Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
1=! Describing the final deliverable(s)
Computing / Software
Construction
Industrial Plants
New ProductsNew Services
Events
Training / HR
Organizational
Complex Systems
the buildingthe facilitythe system
the prototype
the product (item)+ the supply chain
(i.e. the manufacturing facility)
the software
It can become a rather complex mix of “objects”
Qty11122222121122122262221111
Component specication1800 mm × 700 mm ; 0.5 m2 ; Polyamide 5.5 nylonReinforced polyamide nylonReinforced polyamide nylonReinforced polyamide nylonReinforced polyamide nylonReinforced polyamide nylonØ6 mm × 1100 mm ; carbon rodØ6 mm × 600 mm ; carbon rodØ6 mm × 550 mm ; carbon rodØ6 mm × 120 mm ; carbon rodCycolac ABSCycolac ABSCycolac ABSCycolac ABSØ10 mm × 0.4 mm2 ; stainless steelØ10 mm × 0.4 mm2 ; stainless steelØ10 mm × 0.4 mm2 ; stainless steelØ10 mm × 0.4 mm2 ; stainless steel0.1 mm2 × ca. 800 mm ; nylon rope 0.15 mm2 × ca. 800 mm ; nylon ropeØ20 mm × 1 mm2 ; stainless steel20 mm width nylon strapCycolac ABSTransparent nylonPrinted material ; A6 formatPrinted material ; A6 format
Fabrics
Carbon rods
Moulded ABS parts
Rings (COTS)
Rope & strap
Printed materialBag
ID0102030405060708091011121314151617181920212223242526
Component descriptionWing surface (canopy)Nose reinforcement pieceTail reinforcement pieceWisker reinforcement pieceWing end reinforcement pieceWing side reinforcement pieceWing side yardRear yardLongitudinal yardWiskerNose yard junction teeCentral crossWisker junction teeWing side junction teeCentral tying ringWing end tying ringWing side tying ringLine attachment ringTieLineHandle ringHandleLine winderStorage bagUser's manualSafety instructions
BoM
ProductBreakdownStructure
PBS
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BRZ·KITE
Fabrics
Carbon rods
Moulded ABS parts
Rings (COTS)
Rope & strap
Storage bag
Printed material
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
1=! Describing the final deliverable(s)
Product Breakdown Structure
moniteur de positionaimant correcteur dipolaireaimant sextupolaireaimants quadripolairesaimant dipolaire
moniteur d'intensité
moniteurs de profil
zone
expé
rim
enta
le
Onduleur
RFInjection
faisceau d'électrons
Projet
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
1=! Describing the final deliverable(s)
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Servicesélectriques
Bâtiments
Aéraulique
Hydraulique
Matériel Logiciel
Supervisioncentrale
Automatesprogrammables
moniteursde position moniteur
d'intensité
moniteursde prof l
Cavités Klystron
Guides d'ondes
KickersSeptum
CorrecteursOnduleur
DipôlesQuadripôles
Sextupôles
Pompes
Jauges
Chambres
Infrastructures
Systèmes de supervision
Équipements ancillairesInstrumentation du faisceau
Système d'accélération
Convertisseurs de puissance
Éléments magnétiquesSystème vide
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
1=! Describing the final deliverable(s)
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
What is an activity??a.k.a. work unit
] ≠ deliverable!
] consumes time
action verb (infinitive tense) + noun]
To avoid confusion, clever professional practices (e.g. MIL-HDBK-245B + appendix A) and severaltextbooks suggest to label activities as follow:
] consumes resources
] has start and end dates
] creates (a) deliverable(s)
] is measurable
] is assignable to one project participant
Some examples:Manage the projectPrepare PM documentsPerform detail design of wing surfaceSupply rope & strapsCFT for moulded ABS parts
An activity:
and only one!
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Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
What is an activity??An activity:
] consumes time Yes, but within certain limits!
] No definitive answer!
] No more than 5% to 10% of the project duration
] No more than 13 weeks (long lead projects)
] One or up to 1% of level-of-effort activities
What is the maximum duration?
] No definitive answer!
] But not more than 400 activities, otherwise difficult to manage
And how many activities on a coordination schedule?
activities vs. planned activities #748
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
What is a deliverable??a.k.a. result
] ≠ activity!
noun + verb at past participle tense]
Some examples:bzh-kite designedbzh-kite specifiedbzh-kite prototype testedbzh-kite manuf. facility commissioned
] ≠ product!e.g. the brz-kite
Deliverable is a term used [...] to describe a tangible or intangible object produced as a result of the project that is intended to be delivered to a customer (either internal or external).A deliverable could be a report, a document [...] or any other building block of an overall project. en.Wikipedia.org
] ≠ milestone!
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Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
Deriving the Work Breakdown Structure (WBS) from the PBS1=@
PBSBoM
WBS top nodes
Project management andsystem-level design activities
Development activities associated with sub-systemsand product components
A slightly refurbished PBS
System-level integration, validation, refinement and ramp-up activities
Genericactivities
WB
S t
op n
odes
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
Generating the list of activities from the WBS-matrix1=#
For each cell of this matrix,count how many activitiesare required to managethe project efficiently
1 One activityshall be planned
nA few activitiesshall be planned (cf. activity def.)
Sum < 400 act.
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Man
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Prep
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Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
Generating the list of activities from the WBS-matrix1=#Generic activities suited to a construction projectì
Man
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ect
Prep
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Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
Generating the list of activities from the WBS-matrix1=#Generic activities suited to a NPD projectì
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Genericactivities
WB
S t
op n
odes
LoA
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
Generating the list of activities from the WBS-matrix1=#
1 2 11
11 1
1 3 11 1
1 1 111 1
2 1 11 4 11
1 21 1 3
2 1 1
The list ofActivities
(~Work Units)level n
> Work packages = level 1 of the Work Breakdown Structure
> Activities = the leaves ( ) of the WBS (from level 2 to level 6 max.)
> There is no requirement to have all activities at a same level!
Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
the Project
the WorkPackages
Sub-WP'sor CWP's
(Contractor WP)
level 0
level 1
WBS
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Coordination Planning & Schedulingq Identifying the project activities Ú analytical approach
WorkBreakdownStructure
ProductBreakdownStructure
PBS RBSWBSGenericActivities
ResourceBreakdownStructure
BoM
Bill ofMaterials
List ofActivities
Project Breakdown Structure
OrganisationalBreakdownStructure
OBS
to be movedto facility, itemand/or assetmanagementsystems afterthe project iscompleted
CBS
CostBreakdownStructure
w Identifying the resources available, estimating the resources requiredCoordination Planning & Scheduling
2=! Identifying the resources that are available
The Resource Breakdown Structure (RBS)
2=@ Estimating the resources that are required
See section dedicated to Project Costing
2=# Assigning resources to activities
The RACI Matrix
2 types of resources
Renewableresources
Non-renewableresources
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w Identifying the resources available, estimating the resources requiredCoordination Planning & Scheduling
2=# Assigning resources to activities Ú RACI Matrix
RBS
List
of
acti
viti
es
RIs required
XExecutes
FFollows up
IIs informed
HProvide help
for each cell of the matrix, resourceimplication is elicited
w Identifying the resources available, estimating the resources requiredCoordination Planning & Scheduling
2=# Assigning resources to activities Ú RACI Matrix
RIs required
XExecutes
FFollows up
IIs informed
HProvide help
XIs responsible
F
X
F
X
F
Participateto decisions
X
F
I
H
X
F
I
H
X_
F_
I-
H_
Only one per row
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w Identifying the resources available, estimating the resources requiredCoordination Planning & Scheduling
2=# Assigning resources to activities Ú RACI Matrix
XIX
F XI I
II
RFFF
XX
I I
II I RFFF
XX
XI
XF
XXXXH
HII H
RBS
List
of
acti
viti
es
The purpose of this RACImatrix is twofold:
1. identifying the required resources (‘X’,‘R’ and sometimes ‘F’ and ‘H’)
2. organizing information circulation (mailing lists)
MicrosoftExcel spreadsheet
®
®
3=! Estimating the duration of the activities
Defining technical constraints between activities3=@
If required, defining resource constraints3=^
If required, defining temporal constraints3=$
Coordination Planning & Schedulinge Scheduling the activities
If required, getting rid of loops3=#DSM (Design Structure Matrix)
Calculating earliest/latest start/finish dates, floats + critical path(s)3=%PDM (Precedence Diagramming Method) + Gantt Chart
RCPS (Resource-Constrained Project Scheduling) + Gantt Chart
Calculating (earliest) start/finish dates and floats3=&
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Project Costing
Project CostingA three-step process
q Estimating the resources required to perform the project
w Budgeting the resources allocated to the project
The (project) Cost Estimate
The (project) Budget Document
FINALIZECOMMISSIONBUILDDESIGNSTUDYINITIALIZE
Initiators
Project CostingWhen and which effort?
Preliminary Cost Estimate (study + project) preparation
Budget Document (re)validation
Project Board
Cost Estimate (project) refinement/update
Study Team
Cost Estimate + Budget Document updatesProject Team
Initial Budget Document (study + project) preparation
Budget Document (project) refinement/update
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Project Costing
4 families of cost estimating approaches
Globalapproaches
Modularapproaches
Detailedapproaches
q Estimating the resources required to perform the project
the project is analysed as a whole estimates donefor each activity
top-downanalogical
parametric(Cost Estimation
Relationship)
bottom-upanalytical
Intuitiveapproaches
rules-of-thumb
Project Costingq Estimating the resources required to perform the project
DECOMMISSIONOPERATE & MAINTAIN
FINALIZE
COMMISSIONBUILDDESIGNSTUDYINITIALIZE
t
incomes
expenses
Which costs (and incomes) to take into account??
projectfront-end
costs
operations andmaintenance
costs
dism.costs
development costs
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Project Costingq Estimating the resources required to perform the project
Which costs to take into account??
Services
Renewable resources
RESOURCES
Tooling
Vehicles
Space
Equipment*
EquipmentParticipantsInternal
External*
External*
Goods In-kindboth
Equipment
Financial
Non-renewable resources
Goods
Services
both
UtilitiesWater
Sewage
Energycontractsagreements
workload currency(person∙week, person∙month, etc.)
monetary currency(CHF, EUR, GBP, USD, JPY, etc.)
Project Costingq Estimating the resources required to perform the project
Which costs (and incomes) to take into account??
Only chargeable costs shall be considered !]
Cash flows that are distorded (i.e. suppressed or modified)]
Cash flows that are generated by the project]
Past or irrecoverable costs: no!]
Renunciation costs: yes!]
Unquantifiable costs: no!]
Cash flowsof the project =
Cash flowsof the organisation
with the project−
Cash flowsof the organisationwithout the project
These costs will existwhatever the decision
E.g. the consequence of stoppinga project that is already on-going
Benefits sometimesreplace incomes
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Project Costing
Global approaches
q Estimating the resources required to perform the project
1=! Estimating with global approaches
Linearregressions
Chiltonlaw
Freimanprinciple
Distanceweighing
and from tables
Project Costingq Estimating the resources required to perform the project
Dealing with price escalation?
weighing coefficients so that:
where
appropriate economical indices
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Project Costingq Estimating the resources required to perform the project
1=@ Estimating with modular approaches
Project cost as a function of several sizing parameters:
Software:
TruePlanning® [PRICE System] (www.pricesystems.com)>
where are the sizing parameters
Cost+ [3f] (www.3f-fr.com)>COCOMO for IT projects (csse.usc.edu)>
Handbook:
ISPA (International Society of Parametric Analysts)Parametric Estimating Handbook (www.ispa-cost.org)
Project Costingq Estimating the resources required to perform the project
DECOMMISSIONOPERATE & MAINTAIN
FINALIZE
COMMISSIONBUILDDESIGNSTUDYINITIALIZE
t
incomes
expenses
1=# Estimating with detailed approaches
projectfront-end
costs
operations andmaintenance
costs
dism.costs
development costs
PBS WBS
does not exist that muchin scientific facilities!
does not exist that muchin scientific facilities!
past andirrecoverable
costs
past andirrecoverable
costs
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Project Costingq Estimating the resources required to perform the project
DECOMMISSIONOPERATE & MAINTAIN
FINALIZE
COMMISSIONBUILDDESIGNSTUDYINITIALIZE
Which accuracy can be obtained??
FeasibilityStudy
OpportunityStudy
BasicDesign
DetailedDesign
Global Modular Detailed
±30% ±20% ±10% ±5%
ConceptualStudy
OpportunityStudy
SystemDesign
DetailedDesign
Global Detailed
±30% ±20% ±10% ±5%
Detailed
Process industry projects
New product development projects
imprecision ≠ uncertainty!
deterministicnature
probabilisticnature
Project Costingq Estimating the resources required to perform the project
DECOMMISSIONOPERATE & MAINTAIN
FINALIZE
COMMISSIONBUILDDESIGNSTUDYINITIALIZE
How to deal with interest rates and future price escalation??
cost of money ≠ price escalation!
interest rates(financial concept)
inflation(economical concept)
All CF’s shall be set as if they were paid now!]
t2019now
In Cost Estimate and Budget, all figures in CHFnow
E.g. a payment to occur in 2019
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± kCHF
± p·yr
Cost EstimateEditorial Process
Verification:> Some other Key Study (or Project) Participants+ some experts in the fields
> Authoring: Study (or Project) Manager+ a few Key Study (or Project) Participants
Validation:> Study (or Project) Manager
Typical Content
The figuresand theiraccuracy
The approach used (global, modular, detailed)The assumptions (incl. sourcing of economicalrates and indices)
A comprehensive
cost breakdown
is appreciated!
Project Costingw Budgeting the resources allocated to the project
BudgetDocument
CostEstimate
± kCHF
± p·yr
whichbecomes
kCHF
p·yr
#748
TAB orTotalAllocatedBudget
– +Logically:
MicrosoftExcel spreadsheet
®
®
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Project Costingw Budgeting the resources allocated to the project
BudgetDocument
kCHFp·yr
#748
TAB orTotalAllocatedBudget
BAC orBudget atCompletion
PMR orProjectManagementReserve
WBSCBS Cost
BreakdownStructure
or
Budget DocumentEditorial Process
> Verification:
at CostCenterlevel
at WorkPackagelevel
Project Board
Project Manager
> Validation:
Some other Key Study (or Project) participants+ some experts in the field
> Authoring: Study (or Project) Manager+ a few Key Study (or Project) Participants
Study Manager
Managing Projects with --- Part 3 Pierre Bonnal